Without trying to be rude, I spent a good part of my youth growing up in a 600 sq/ft â€œhouseâ€ â€“ it had been the local post office before we got it â€“ some of the best times of my life were spent there. And there were 5 of us â€¦ 7 if you count the cat and dog â€¦
Itâ€™s time for our nation to refocus.
Here is a post that may put things in perspective:
Your problem that when you sell your home as a Short Sale your credit will take a hit. Once that happens your ability to purchase or even rent a bigger home becomes much more difficult. Selling your home is not the problem but please think this through. Talk to an Attorney long before putting your house on the market. Without a Hardship or Job Transfer like Debra mentioned below, you may even incur tax liabilities that at present you can't afford.
You will need at least a 20% down payment to purchase another home.
If you are negative $40,000 on your current home, with closing costs added, this will be a larger number. Short Sale is possible if you don't have other cash assets or if you have a financial hardship (like health problem, job).